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Sweetbay stores close early

Sales associate Tiffany Prater checks out customers in the express line at the Sweetbay Supermarket on S. Tamiami Trail and Bahia Vista in Sarasota in 2009. The supermarket chain closed four other local stores on Feb. 6, 2013.

Published: Wednesday, February 6, 2013 at 5:27 p.m.

Last Modified: Wednesday, February 6, 2013 at 7:17 p.m.

Four Sweetbay Supermarkets in Southwest Florida and 33 other stores statewide closed for good Wednesday, a week earlier than previously announced.

The Tampa-based chain's store on Beneva Road in Sarasota, stores on 33rd Street East and State Road 70, in Bradenton, and another on U.S. Highway 301 in Ellenton were shuttered as a part of a plan unveiled last month.

In all, the company announced it would close 30 percent of its Florida stores stores by Feb. 13.

The local store closings cost 300 people their jobs. Statewide, Sweetbay's decision will leave more than 2,000 people jobless.

The supermarket chain will still operate 10 stores in Sarasota, Manatee and Charlotte counties, including two stores on U.S. 41 in Bradenton and Sarasota and another on Clark Road in south Sarasota.

A Sweetbay spokeswoman said Wednesday the stores were closing ahead of schedule because they were running out of merchandise and were not being restocked.

“The retail industry is going through a major transition right now, even in grocery stores,” said Phil Lempert, a grocery store analyst and editor of Supermarketguru.com.

“It is hard for chains to compete with brands like Publix that are so dominant in some areas, and with Walmart Neighborhood Markets expanding at such a fast rate.”

Sweetbay, under Belgian parent company Delhaize Group, was built from former Kash n' Karry stores beginning in 2004.

But the chain has suffered from image problems and an inability to carve out a niche among Florida shoppers. While Kash n' Karry appealed to budget-conscious consumers, Sweetbay's more upscale approach alienated some of its customer base with higher prices on wine and other items.

Most notably, Sweetbay has failed to gain traction against firmly embedded competitors such as Publix Super Markets Inc. and newcomers like Whole Foods Market and Trader Joe's.

The chain has struggled, as well, against lower-cost competitors like Aldi, Sav-A-Lot and members' clubs like Sam's Club and Costco in Southwest Florida.

“The way people buy food has changed. We no longer shop at just one store anymore,” Lempert said. “We don't get everything we need at Publix. We shop around at stores like CVS and competing grocers, too. People don't care so much about brand loyalty as much as they do about the quality, convenience and price.”

Most of Sweetbay's Florida closings are north of Manatee County. Of the 33 closings, 12 are in Pinellas and Pasco counties and another six are in Tampa, the company said.

When the restructuring is complete, Sweetbay will have 72 stores in Florida.

The closings come as Delhaize Group's American revenue slipped in the fourth quarter. Earnings estimates are expected to fall considerably for last year as a whole, according to company data.

Revenue in the fourth quarter fell 2.1 percent, the company said. Perhaps more significantly, however, the company is anticipating a 17.5 percent decline in its 2012 operating profits when it formally reports earnings later this year.

<p>Four Sweetbay Supermarkets in Southwest Florida and 33 other stores statewide closed for good Wednesday, a week earlier than previously announced. </p><p>The Tampa-based chain's store on Beneva Road in Sarasota, stores on 33rd Street East and State Road 70, in Bradenton, and another on U.S. Highway 301 in Ellenton were shuttered as a part of a plan unveiled last month. </p><p>In all, the company announced it would close 30 percent of its Florida stores stores by Feb. 13. </p><p>The local store closings cost 300 people their jobs. Statewide, Sweetbay's decision will leave more than 2,000 people jobless. </p><p>The supermarket chain will still operate 10 stores in Sarasota, Manatee and Charlotte counties, including two stores on U.S. 41 in Bradenton and Sarasota and another on Clark Road in south Sarasota.</p><p>A Sweetbay spokeswoman said Wednesday the stores were closing ahead of schedule because they were running out of merchandise and were not being restocked.</p><p>“The retail industry is going through a major transition right now, even in grocery stores,” said Phil Lempert, a grocery store analyst and editor of Supermarketguru.com.</p><p>“It is hard for chains to compete with brands like Publix that are so dominant in some areas, and with Walmart Neighborhood Markets expanding at such a fast rate.”</p><p>Sweetbay, under Belgian parent company Delhaize Group, was built from former Kash n' Karry stores beginning in 2004.</p><p>But the chain has suffered from image problems and an inability to carve out a niche among Florida shoppers. While Kash n' Karry appealed to budget-conscious consumers, Sweetbay's more upscale approach alienated some of its customer base with higher prices on wine and other items.</p><p>Most notably, Sweetbay has failed to gain traction against firmly embedded competitors such as Publix Super Markets Inc. and newcomers like Whole Foods Market and Trader Joe's.</p><p>The chain has struggled, as well, against lower-cost competitors like Aldi, Sav-A-Lot and members' clubs like Sam's Club and Costco in Southwest Florida.</p><p>“The way people buy food has changed. We no longer shop at just one store anymore,” Lempert said. “We don't get everything we need at Publix. We shop around at stores like CVS and competing grocers, too. People don't care so much about brand loyalty as much as they do about the quality, convenience and price.”</p><p>Most of Sweetbay's Florida closings are north of Manatee County. Of the 33 closings, 12 are in Pinellas and Pasco counties and another six are in Tampa, the company said.</p><p>When the restructuring is complete, Sweetbay will have 72 stores in Florida.</p><p>The closings come as Delhaize Group's American revenue slipped in the fourth quarter. Earnings estimates are expected to fall considerably for last year as a whole, according to company data.</p><p>Revenue in the fourth quarter fell 2.1 percent, the company said. Perhaps more significantly, however, the company is anticipating a 17.5 percent decline in its 2012 operating profits when it formally reports earnings later this year.</p><p>In addition to Sweetbay, Delhaize America operates Food Lion and Dollar Food supermarkets, among others. In all, Sweetbay has 1,500 stores in 16 states.</p>